- BlackRock Bitcoin ETFs stabilize prices during declines, acting as a safety net for investors.
- Bitcoin natives, not institutions, may be behind recent price drops, per Ali Martinez data.
- Coinbase CEO denies Bitcoin IOU manipulation claims, ensuring on-chain ETF transactions.
Bloomberg analyst Eric Balchunas has highlighted the significant impact of BlackRock and Bitcoin ETFs in stabilizing Bitcoin’s price during times of potential decline. Balchunas’s analysis suggests that these institutional investments have repeatedly acted as a safety net, preventing Bitcoin from experiencing more severe price drops.
According to Balchunas, Bitcoin ETFs, particularly those associated with BlackRock, have supported Bitcoin’s price. These financial products have provided the necessary liquidity and investor confidence to help prevent the cryptocurrency from falling into what he described as “the abyss.”
This assertion responds to widespread rumors and theories that traditional investors, including those managing ETFs, are to blame for Bitcoin’s price declines.
Contrary to popular belief, Balchunas pointed out that Bitcoin natives, not institutional investors, may be responsible for recent price declines.
He cited data from popular Bitcoin analyst Ali Martinez, who revealed that Bitcoin miners sold over 30,000 BTC within three days. This supports Balchunas’s claim that the selling pressure comes from within the Bitcoin community itself, rather than from external factors.
The role of BlackRock in the Bitcoin market has been a subject of speculation. There have been allegations that Coinbase, a major cryptocurrency exchange, has been issuing Bitcoin IOUs to BlackRock, potentially allowing the asset manager to short the cryptocurrency.
Crypto analyst Tyler Durden promoted this theory, suggesting that these IOUs could be used to manipulate Bitcoin’s price.
However, Coinbase CEO Brian Armstrong has refuted these claims, emphasizing that ETF transactions are processed and settled on-chain, with audits available for public review. Armstrong clarified that no foul play is involved and that Coinbase adheres to strict auditing standards.
As of now, Bitcoin is trading at around $60,000. The cryptocurrency market is closely watching upcoming Federal Reserve rate cuts, which could influence Bitcoin’s price. Historically, such macroeconomic events have had a bullish effect on Bitcoin.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
